Over 25,000 Utilita customers to receive compensation after support failings

More than 25,000 customers of Utilita Energy are to receive compensation after regulator Ofgem found failings in the supplier’s support of vulnerable pre-payment meter households.

The energy watchdog said Utilita had agreed to pay out £830,000, including £508,260 in compensation for affected customers and £321,740 to the Energy Redress Fund, which helps support energy consumers in vulnerable situations.

Ofgem said it believed Utilita did not take into consideration individual circumstances when deciding whether or not to provide additional support credits needed for customers topping up pre-payment meters.

Affected customers, including those with medical issues and those classed as vulnerable, are set to receive £20 each in redress, which will be paid in most cases as a direct credit on their meter.

Ofgem had ordered Utilita in September to meet its obligations to protect customers after uncovering apparent failings in the way the power firm had been dealing with all customers, including vulnerable customers, those on the Priority Services Register and customers in debt.

It raised the concerns after assessing a review of scripts of staff talking to customers, training materials, procedures, policies and recorded calls with customers.

Ofgem said Utilita, which has more than 775,000 electricity and 648,000 gas customers, has since “taken steps which we consider to be appropriate to secure compliance”.

“In recognition of its failings, Utilita has now agreed to this financial redress package instead of a penalty,” it added.

Cathryn Scott, Ofgem’s director for enforcement and emerging issues, said: “As the energy regulator, protecting consumers is our top priority, and we have strong expectations that energy suppliers must take the individual circumstances of consumers, particularly those who are in vulnerable situations, into consideration.

“Pre-payment meters are currently relied on by around four million UK households, and the current cost of living issue is placing pressure on many households, which in turn is causing more people to require additional support credits to top-up for their prepayment meters.

“While Utilita has moved swiftly to correct these issues and agreed to compensate those affected, this action should serve as a reminder to other suppliers to go further to ensure vulnerable groups are getting the support they need, particularly during the colder winter months.”

Ofgem revealed last month it had told 17 suppliers, including Utilita, to improve how they deal with vulnerable customers.

Utilita was one of five of those identified as having “severe weaknesses”, alongside: Good Energy, Outfox, SO Energy and Tru Energy.

Pre-payment meter customers have also been hit by delays in getting energy support vouchers from the Government.

They are entitled to £400 in support over six months, paid in instalments of either £66 or £67, but the Government last month admitted a “blockage” in getting the support out to pre-payment meter households.

Ofgem said: “If you are a pre-payment meter customer and have not received your credit or voucher, please contact your supplier straight away.”